WASHINGTON (AP) – The Democrat-controlled House voted overwhelmingly to cut interest rates on need-based student loans Wednesday, steadily whittling its list of early legislative priorities.
The strong bipartisan vote in the House came as a dispute between Republicans and Democrats in the Senate derailed ethics and lobbying reform that the new Democratic majority had made its first legislative initiative.
The House legislation, passed 356-71, would slice rates on the subsidized loans from 6.8 percent to 3.4 percent in stages over five years at a cost to taxpayers of $6 billion. About 5.5 million students get the loans each year.